In the world of financing and payments, change is often the only constant. Companies are constantly looking for innovative ways to optimize their cash flow while strengthening their supplier relationships. This is where Dynamic Discounting comes in, a solution that DSG (DSG Diensten BV) has started with.
DSG is better known for the labels: Stiho, Baars & Bloemhoff, Qoqon that they carry and is therefore an established name in the construction world.
Dynamic Discounting was originally designed to automate static discount appointments and make them dynamic. What makes DSG unique is that it has reversed the traditional roles. Instead of just acting as a customer, DSG now enables its suppliers to get paid earlier via the NCN Capital platform.
This shift is not only a smart business move, but it also reflects a growing focus on Environmental, Social, and Governance (ESG) considerations in the corporate world. By offering suppliers the opportunity to get paid earlier, DSG can help to alleviate the financial pressures that some of these suppliers are experiencing, allowing them to improve their operational operations and potentially strengthen their sustainability efforts. This contributes to a more inclusive and sustainable supply chain and collaboration.
In addition, the concept of “Deep Tier Financing” can play an important role. Deeper levels of financing can often be overlooked in traditional financing models, leaving smaller suppliers (Longtail) in the supply chain. By reaching these layers and providing them with access to resources at an earlier stage, DSG can strengthen the resilience and stability of the entire supply chain.
DSG is taking an important step to change the rules of the game by using Dynamic Discounting, which has a positive impact on the entire (financial) Supply Chain.